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Reverse Mortgage Calculator Estimates

 
on this page:  How Much Could You Get? | Important Information
 

The approximate estimates on this page are based on your calculator entries. These estimates do not reflect local cost variables, are not an offer to make you a loan, do not qualify you to obtain a loan, and are not an official loan disclosure.

How much cash could you get?

 

The table below shows the largest amount of cash that may be available to you through two nationally available reverse mortgage programs:

  • the federally-insured "Home Equity Conversion Mortgage" (HECM), and
  • the proprietary Home Keeper MortgageSM from Fannie Mae

From either plan you could get

  1. a single lump sum advance at loan closing,
  2. OR a creditline account that lets you withdraw cash at any time,
  3. OR a monthly loan advance for as long as you live in your home,
  4. OR any combination of a lump sum advance, creditline account, and monthly loan advance.
YOU COULD GET   HECM   HomeKeeper
1) A single lump sum advance of
2) OR a creditline account of
      that grows larger each year by
      so, if unused, available credit
           in 5 years would be
           in 10 years would be
3) OR a monthly loan advance for
  as long as you live in your home
4) OR any combination of lump sum at closing, creditline
     account, and monthly advance
 
Important Information About These Results

 
If you currently owe any debt on your home, and do not pay it off before getting a reverse mortgage, you must take at least that amount as a lump sum advance at closing, and use it to pay off your debt at that time. This would reduce the amount of cash available to you in a single lump sum, creditline or monthly advance. If you do not qualify for enough cash to pay off any debt on your home at closing, you cannot get a reverse mortgage.

For example, if you still owe $20,000 on a mortgage or home equity loan and do not pay it off before closing a reverse mortgage, you would have to qualify for at least $20,000 in a lump sum from a reverse mortgage, and then use it to pay off your debt at closing. If you qualify for more than $20,000, you could take the rest in cash at closing, leave it in a creditline, or take it as monthly advances.

All estimates on this page are based on monthly-adjusting interest rates in the HECM program, maximum origination and servicing fees, and an approximate national average closing cost total. Interest rates are current for the week of . Actual loan amounts available depend on the rates in effect when a loan is closed, and the actual origination fee and closing costs charged. Actual loan amounts available also depend on the appraised value of your home and current equity limits in each program. These estimates reflect Fannie Mae's year 2003 equity limit and the 203-b equity limits from HUD's web site as of . HUD limits are subject to change during the year. Note: Creditlines are not available in Texas.

Creditline growth projections show maximum potential future available credit assuming continuation of the current creditline growth rate (which could increase or decrease) and no creditline draws. The more credit you use sooner, the less cash will remain available. To see how credit used affects cash remaining, click

The bottom line:
These are estimates of the loan advances that may be available to you based on the information you entered in the calculator.

All of the figures on this "Loan Estimates" page are provided for illustrative and educational purposes only. AARP does not endorse any reverse mortgage product or lender.

Proprietary Reverse Mortgages: The Home Keeper MortgageSM from Fannie Mae is the only proprietary reverse mortgage available on a national basis. Other proprietary plans may provide more cash than HECM or Home Keeper on the highest-valued homes, but they are not available in all states. Information on finding these plans — and the loan comparisons you need to evaluate them — is presented in a later page on Selecting a Lender.

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Because of the complex issues involved in reverse mortgages, AARP recommends that you read all the articles on this topic on this site before requesting counseling or making any decisions. 

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Warning: This calculator is provided by AARP under an agreement with NETirement.com, Inc. which has copyrighted it. AARP and NETirement hereby restrict the use of this calculator to noncommercial purposes. You may use the calculator to generate loan estimates, but may not sell this information in whole or in part to any party. All commercial uses are restricted and unauthorized and may constitute a violation of U. S. copyright law. This calculator is not for commercial use. Commercial users are not to access this calculator.